Broadcom Ltd. has agreed to pay $5.9 billion to buy Brocade Communications, a price that's 47 percent above where shares of the networking business closed on Friday before word leaked of M&A talks.

As reported on Tuesday, Broadcom (NASDAQ:AVGO) doesn't want Brocade's IP networking business and plans to sell it off.

Broadcom, which has dual headquarters in San Jose and Singapore, plans to pay $12.75 a share for San Jose-based Brocade (NASDAQ:BRCD) and assume about $400 million in debt.

Brocade, which makes networking technology for data centers, employs about 600 people in Broomfield. That's out of 5,948 people worldwide, including its newly-acquired Ruckus Wireless division.

Read more at the Denver Business Journal:

(© 2016 American City Business Journals. All rights reserved.)